International Business Machines (NYSE:IBM) Trading Up 3.5% on Better-Than-Expected Earnings

International Business Machines Co. (NYSE:IBM)’s stock price shot up 3.5% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $192.78 and last traded at $190.45. 3,605,579 shares changed hands during trading, a decline of 18% from the average session volume of 4,403,771 shares. The stock had previously closed at $184.02.

The technology company reported $2.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.16 by $0.27. The firm had revenue of $15.77 billion during the quarter, compared to analysts’ expectations of $15.62 billion. International Business Machines had a return on equity of 40.21% and a net margin of 13.18%. The company’s revenue for the quarter was up 1.9% compared to the same quarter last year. During the same period last year, the business posted $2.18 earnings per share.

International Business Machines Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 10th. Stockholders of record on Friday, May 10th were paid a $1.67 dividend. The ex-dividend date of this dividend was Thursday, May 9th. This represents a $6.68 dividend on an annualized basis and a dividend yield of 3.51%. This is a positive change from International Business Machines’s previous quarterly dividend of $1.66. International Business Machines’s dividend payout ratio is presently 75.65%.

Analyst Ratings Changes

Several research firms have commented on IBM. JPMorgan Chase & Co. lowered their price target on shares of International Business Machines from $190.00 to $185.00 and set a “neutral” rating on the stock in a report on Thursday, April 25th. UBS Group raised their target price on International Business Machines from $125.00 to $130.00 and gave the stock a “sell” rating in a report on Monday, April 22nd. BMO Capital Markets lowered their price objective on International Business Machines from $210.00 to $190.00 and set a “market perform” rating on the stock in a research report on Thursday, April 25th. StockNews.com upgraded shares of International Business Machines from a “hold” rating to a “buy” rating in a research report on Wednesday, June 19th. Finally, Morgan Stanley decreased their price objective on shares of International Business Machines from $186.00 to $179.00 and set an “equal weight” rating for the company in a research report on Friday, April 26th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and seven have given a buy rating to the company’s stock. According to MarketBeat.com, International Business Machines currently has a consensus rating of “Hold” and an average target price of $183.53.

Institutional Investors Weigh In On International Business Machines

Several large investors have recently bought and sold shares of IBM. Vanguard Group Inc. increased its position in shares of International Business Machines by 6.7% during the first quarter. Vanguard Group Inc. now owns 88,152,714 shares of the technology company’s stock worth $16,833,642,000 after purchasing an additional 5,546,855 shares in the last quarter. Charles Schwab Investment Management Inc. raised its holdings in International Business Machines by 1.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 6,465,214 shares of the technology company’s stock valued at $1,048,631,000 after acquiring an additional 61,028 shares during the last quarter. Norges Bank acquired a new stake in shares of International Business Machines in the 4th quarter worth $1,019,009,000. Dimensional Fund Advisors LP grew its holdings in shares of International Business Machines by 2.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 4,500,184 shares of the technology company’s stock valued at $736,015,000 after purchasing an additional 97,482 shares during the period. Finally, Price T Rowe Associates Inc. MD increased its position in International Business Machines by 151.6% during the first quarter. Price T Rowe Associates Inc. MD now owns 3,515,666 shares of the technology company’s stock worth $671,352,000 after purchasing an additional 2,118,165 shares during the last quarter. 58.96% of the stock is currently owned by hedge funds and other institutional investors.

International Business Machines Stock Up 3.5 %

The company has a debt-to-equity ratio of 2.32, a current ratio of 1.13 and a quick ratio of 1.09. The company has a market capitalization of $174.95 billion, a PE ratio of 21.57, a P/E/G ratio of 4.54 and a beta of 0.71. The business’s 50 day simple moving average is $173.83 and its 200 day simple moving average is $178.81.

About International Business Machines

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.